WHAT'S ON YOUR MIND
By Scott Hennen
Host of “What’s On Your Mind?” Radio Show
heard on the Flag Family Network including KTGO 1090AM in Watford City, Williston and Tioga, North Dakota
The North Dakota Legislature consists of a total of 141 members, 94 Representatives and 47 Senators. If you ask any of them what their top priority is for the 69th Legislative Session you’ll likely hear the same answer: Property tax relief and reform. While consensus is a good thing, the peril lies in the fact that there are 141 different answers on how to accomplish that goal. 142 different ideas actually, because Governor Kelly Armstrong will have the final say.
Armstrong’s proposal, which has now been included in House Bill 1176, starts with caps on local spending while eliminating property taxes for an entire class of homeowners. He proposed putting the bulk of North Dakota’s primary residences on a path to zero property taxes in a decade. That’s the tough part, because no one can tell you with certainty how much the state will have in the coffers to fund your property tax relief. The debate is underway in committee and there will be plenty of rough and tumble elbowing over the remaining 70 days of the session before the final product gets to the Governor’s desk for a signature.
The hot button issue is going to be sustainability. North Dakota is largely funded by one source, that’s money from oil & gas production. Oil prices are impacted by a myriad of unpredictable factors. Without major advances in Bakken oil recovery experts indicate we will begin to see terminal decline in Bakken production within a decade, which means declining tax revenues which has major impacts on our state’s budget. The only way to reverse it is by developing new technologies to boost production. The good news is there’s a viable solution being researched by a handful of producers and the world renowned Energy & Environmental Research Center. The bad news is the pace at which these new technologies are being developed is not happening soon enough to stave off the predicted declines. And that means funding more property tax relief in a sustainable fashion is almost impossible.
It’s time to advocate for a different top priority even before the property tax proposals.
North Dakota needs a “Manhattan project” for energy. A bold plan to invest in a whole new level of research that would speed the widespread use of what Ron Ness, President of the North Dakota Petroleum Council, describes as “Improved oil productivity and recovery.” Ness told me that “All ideas should be on the table while the winds of DC and the world are with us.”
We can’t forget that the Biden regime has set this industry back several years with this effort. “We need to crack the code on increasing production sooner - by 2027 and then 2030” said Ness. He’s spot on! While the Industry is already investing tens of millions - the state should step up and be a partner to attract more investment. “Now is the time”, concluded Ness. Lynn Helms, the recently retired long time Director of the North Dakota Department of Mineral Resources agrees. That’s a powerful endorsement.
The only question should be how big of an investment is needed. I’d say between $50 & $100 Million big, to insure the revenue pours in to fund new tax cuts.
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